Massachusetts charges 6.25% sales tax on most purchases

Massachusetts has a 6% state sales tax on tangible goods and certain services. However, most Massachusetts counties add a 0.25% local tax on top of that, bringing the total to 6.25%. A handful of municipalities in Berkshire County charge only the state rate of 6%, so your actual rate depends on where you make the purchase.

The tax applies at the point of sale — when you pay, not when you order. If you buy something online from a Massachusetts retailer, they charge you the tax rate for your delivery address. If you buy from an out-of-state retailer and have it shipped to Massachusetts, that retailer may or may not charge you tax, depending on their own state's rules and whether they have a physical presence in Massachusetts.

Key Takeaways

  • Massachusetts state sales tax is 6%, and most counties add 0.25% for a total of 6.25%.
  • Clothing and footwear under $175 per item are exempt from sales tax in Massachusetts.
  • Groceries, prescription medications, and medical devices are not subject to sales tax.
  • Restaurant meals, prepared foods, and alcohol are taxed at the full rate.
  • The tax rate you pay depends on the delivery address or location where you make the purchase, not where you live.

What is and is not taxed in Massachusetts

Massachusetts exempts certain categories from sales tax entirely. Groceries — unprepared food you cook at home — are not taxed. Prescription medications and certain medical devices like glucose monitors and hearing aids are also exempt. Clothing and footwear under $175 per item are not taxed, but if a single item costs $175 or more, the entire purchase is taxed.

Items that are taxed include restaurant meals, prepared foods from delis or bakeries, alcohol, gasoline, and most services. Haircuts, car repairs, and dry cleaning are all subject to sales tax. Digital goods like e-books, streaming subscriptions, and software downloads are generally taxed as well, though the rules can be complex depending on how the vendor classifies them.

One common source of confusion: if you buy a shirt for $150 and a pair of shoes for $180, the shirt is not taxed but the shoes are, because the $175 threshold applies per item, not per transaction.

How the 6.25% breaks down between state and local

The state of Massachusetts collects 6% of every taxable sale. On top of that, your county or municipality may add 0.25%. Most of Massachusetts — including Boston, Worcester, Springfield, and the surrounding areas — charges the full 6.25%. The exception is Berkshire County (the western part of the state, including Pittsfield and Great Barrington), where most municipalities do not add the local portion, so the rate stays at 6%.

When you check out at a store or online, the tax shown should reflect your location. If you are unsure whether your town charges the local 0.25%, you can look it up on the Massachusetts Department of Revenue website or ask the retailer.

Sales tax on online and mail orders

If you order something online from a Massachusetts business and have it shipped to a Massachusetts address, the retailer will charge you the sales tax for that delivery address. If you order from an out-of-state retailer, whether they charge you Massachusetts sales tax depends on whether they have a legal obligation to do so — usually based on whether they have employees, warehouses, or other physical operations in the state.

Large national retailers like Amazon, Target, and Walmart now collect sales tax on orders shipped to Massachusetts, even though their headquarters are elsewhere. Smaller out-of-state retailers may not. There is no way to know without checking at checkout or contacting the retailer directly.

Who collects the tax and where it goes

The retailer — the store or online business where you make the purchase — collects the sales tax from you and sends it to the Massachusetts Department of Revenue. You do not send it yourself. The state keeps the 6% portion, and the local 0.25% goes to your city or town.

Retailers are required to register with the state and file sales tax returns, usually monthly or quarterly depending on their volume. If a retailer fails to collect or send in the tax, the state pursues them, not the customer. As a buyer, your only responsibility is to be aware of what you are paying.

Special situations and exemptions

Certain organizations are exempt from paying sales tax on their purchases. Non-profit organizations, schools, and government agencies can often buy items tax-free by providing a resale certificate or exemption certificate to the retailer. If you work for one of these organizations and are buying supplies on their behalf, ask your manager or finance department for the proper certificate.

Resellers — people who buy items to resell them — can also avoid paying sales tax on their purchases by providing a resale certificate. This prevents the tax from being charged twice: once when the reseller buys the item and again when they sell it to the customer.

Frequently Asked Questions

Do I pay sales tax if I buy something in another state and bring it home to Massachusetts?

No. Sales tax is charged where the sale happens, not where you live. If you buy something in New York and pay New York sales tax, you do not owe Massachusetts tax on it. However, if you order something online and have it shipped to Massachusetts, the retailer should charge you Massachusetts tax.

Why is the clothing exemption $175 and not a different amount?

Massachusetts set that threshold in 1990 and has not changed it since. The state chose $175 as a way to exempt everyday clothing while still taxing luxury items. The threshold applies per item, so a $200 coat is fully taxed, but a $150 coat and $150 pants are both exempt.

If I buy something online from a Massachusetts retailer but have it shipped out of state, do I pay Massachusetts sales tax?

No. The tax is based on the delivery address. If you have it shipped to another state, that state's tax rules explore instead — or no tax at all, depending on the state. The retailer should charge you the tax rate for your delivery address.

Are services like haircuts and car repairs taxed the same way as products?

Yes. Most services in Massachusetts are subject to the same 6% state tax plus any local 0.25%. Haircuts, repairs, cleaning, and labor are all taxed. A few services like medical care and legal services have different rules, but most everyday services you pay for are taxed.